A swap screen might quote 100 tokens, yet the final amount received is smaller. Besides fees, the price can change between the quote and execution, and your own order can affect the market price.
Similar-looking terms with different meanings
- Slippage: The difference between the expected price and the actual execution price. Depending on market conditions, it can work for or against you.
- Slippage tolerance: The amount of adverse change from the quote you agree to accept. Services apply it in different ways.
- Price impact: The effect of your trade size on the pool or market price.
- Minimum received: The minimum quantity required by the trade's conditions—an important figure to check in the quote.
A large order in a small pool
In a hypothetical pool, swapping ₩10,000 worth and ₩10 million worth may not give the same per-token price. A larger trade changes the pool's asset ratio more. This price impact may already be included in the estimated quantity when the quote is shown.
Other trades occurring between the quote and execution can then create additional differences. Separating changes caused by your order from changes during processing makes the screen easier to understand.
Does raising the tolerance solve the problem?
A higher tolerance means accepting a worse price. Treating it simply as a setting to make a trade succeed can cause a larger-than-expected loss. Setting it too low can make a transaction fail, but before raising it substantially, inspect liquidity and the trade route.
On the final confirmation screen, read estimated received, minimum received, price impact, service fees and network costs separately. If the problem is an unfamiliar token's trading restrictions or additional fees, changing slippage tolerance alone will not fix it.
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